Nicole is indifferent between option A, which gives her $20,000 for sure, and option B, which gives her $10,000 with probability 0.5 or $32,000 with probability 0.5. Nicole's cost of risk for option B is
A) zero.
B) $1,000.
C) $2,000.
D) $20,000.
B
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Which of these forms of financing requires the smallest minimum size of the borrower?
A) short-term commercial bank loans B) commercial paper C) mezzanine funds D) venture capital funds
Which of the following occurs if government intervention forces the economy inside the production possibilities curve?
A. Income inequality. B. Market failure. C. Government failure. D. Externalities.
A rightward shift in the intertemporal budget line would be caused by ________
A) an increase in future income and wealth B) an increase in future income and a decrease in wealth C) a decrease in future income and an increase in wealth D) a decrease in future income and wealth
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a. liberalism b. utilitarianism c. libertarianism d. welfarism